# LIABILITY CONTRACTION SUMMARY ## What You Can & Cannot Contract Out - 69 Carr Street Lease **Property:** 69 Carr Street, Geelong VIC 3220 **Date:** May 2026 --- ## YOUR INTENT vs VICTORIAN LAW | Your Intent | What Law Allows | What You MUST Do | |---|---|---| | **Contract out furniture/appliance replacement liability** | ❌ CANNOT fully contract out | Can specify tenant is responsible for damage from misuse/negligence only. YOU remain liable for manufacturing defects, safety failures, personal injury | | **Specify routine maintenance as tenant responsibility** | ✅ CAN contract | Tenant can maintain appliances (cleaning, filter changes) and furniture (vacuuming, etc.) | | **Exclude liability for appliance breakdown** | ❌ CANNOT exclude | If appliance fails and injures tenant, you are liable. Consumer Goods Act applies. | | **Require tenant to replace broken furniture/appliances** | ❌ CANNOT require | You MUST replace items that fail under normal use or due to defect | | **Landlord provides garden maintenance** | ✅ CAN do this | You can voluntarily provide full garden maintenance service. Tenant is not obligated to do it | | **Tenant responsible for garden mowing/weeding** | ✅ CAN contract | Tenant can be required to do routine maintenance (mowing, weeding, watering) | | **Tenant responsible for structural garden work** | ❌ CANNOT contract | You MUST maintain fences, walls, pergolas, remove dead trees, ensure fire safety clearance | | **Tenant replaces dead trees** | ❌ CANNOT require | Dead tree removal is YOUR mandatory obligation | | **Tenant pays for fire safety clearance** | ❌ CANNOT require | Fire safety compliance is YOUR mandatory obligation | --- ## WHAT HAPPENS IF YOU IGNORE THE LAW ### Scenario 1: You Try to Exclude Furniture Liability **Your clause:** "Tenant responsible for all furniture damage or replacement" **What happens:** - Tenant claims couch has a manufacturing defect after 6 weeks - Couch causes injury (fabric tears and creates sharp edge) - Tenant takes you to VCAT - VCAT disallows your clause (violates Consumer Goods Act) - You must pay for couch replacement + medical costs - You pay VCAT filing fees ($300-500) + legal costs - You cannot collect from bond for "your" liability ### Scenario 2: You Require Tenant to Fix Structural Garden Issues **Your clause:** "Tenant must fix broken fence and remove dead tree" **What happens:** - Tenant reports dead tree is dangerous (correct - it is) - You don't respond; you claim tenant is responsible - Tenant withhold rent (legal right for property safety breach) - Tree falls on neighbor's property or person - You are liable for damages (not tenant) - Neighbor sues you, not tenant - You have no defense because it was YOUR legal obligation - Insurance may deny claim due to breach of policy conditions ### Scenario 3: Appliance Fails and Tenant Is Injured **Your clause:** "All appliance damage is tenant's responsibility" **What happens:** - Electric kettle has faulty switch; shocks tenant - Tenant is hospitalized; claims medical costs + injury damages - You claim clause protects you - VCAT overrules clause (Consumer Goods Act prevails) - You must pay medical costs + personal injury compensation - Clause is unenforceable --- ## YOUR RECOMMENDED APPROACH ### For Furniture & Appliances: **✅ ALLOWED - Use This Language:** ``` The Tenant is responsible for: - Normal maintenance and cleaning of all appliances and furniture - Damage resulting from Tenant misuse, negligence, or failure to maintain - Example: Breaking a dish, spilling on couch, damage from not cleaning filters The Landlord is responsible for: - Replacing any item that breaks due to normal use or manufacturing defect - Ensuring all items are safe and fit for purpose - Repairing or replacing items within 7 days if they become unsafe - Example: Couch leg breaks from normal sitting, washing machine won't drain ``` **Why this works:** - Tenant still has maintenance obligations - You're protected from misuse claims on bond - You remain liable for safety (legally required anyway) - VCAT will uphold this clause --- ### For Garden Maintenance: **✅ ALLOWED - Use This Language (Your Choice: Landlord Provides):** ``` The Landlord will provide all garden maintenance at Landlord's expense, including: - Regular grass mowing (fortnightly during growing season) - Garden bed maintenance and weeding - Tree pruning and dead wood removal - Fire safety vegetation clearance - Structural maintenance (fences, walls, pergolas) The Tenant is responsible for: - Keeping garden reasonably tidy during tenancy - Not damaging plants or structures - Removing household garden waste - Watering plants if desired (optional) ``` **OR - Use This Language (If you want tenant to maintain):** ``` The Tenant is responsible for: - Regular grass mowing (at least fortnightly during growing season) - Garden bed weeding and tidying - Plant watering - Removal of household garden waste - Minor pruning of plants (non-structural only) The Landlord is responsible for: - All structural maintenance: fences, walls, pergolas, gates - Dead tree and hazardous branch removal - Fire safety vegetation clearance (10m zone) - Pest control for structural issues - Drainage maintenance ``` **Why this works:** - Clearly separates mandatory (landlord) from delegable (tenant) work - Prevents disputes about responsibility - Protects you from claims tenant had to do impossible work - VCAT will uphold this --- ## THE FURNITURE LIABILITY CLAUSE FOR YOUR LEASE **Copy this into Schedule E of your rental agreement:** --- ### SCHEDULE E: FURNITURE & APPLIANCES LIABILITY **1. Furniture & Appliance Inventory** The Landlord has provided the furniture and appliances listed in Schedule B, in the condition described at the commencement of this tenancy. The Tenant acknowledges receipt of these items. **2. Tenant Maintenance Responsibilities** The Tenant is responsible for and agrees to: - Clean all appliances regularly (especially after use - stovetop, oven, refrigerator) - Replace filters in kitchen rangehood and air conditioning units annually - Maintain washing machine and dishwasher according to manufacturer instructions - Vacuum furniture regularly to prevent dust accumulation - Wipe down furniture surfaces as needed - Report any faults or damage to the Landlord immediately **3. Tenant Damage Responsibility** The Tenant is financially responsible for: - Damage to furniture or appliances caused by Tenant misuse or negligence - Examples: Broken dishware, water damage from spill, damage from impact - Damage resulting from Tenant's failure to follow maintenance instructions - Examples: Not cleaning filters, not descaling dishwasher, ignoring warning lights **4. Landlord Responsibility - Cannot Be Excluded** The Landlord retains full responsibility for: - Manufacturing defects or product failures - Damage resulting from normal use under proper maintenance - Safety failures or mechanical breakdown (age/wear) - All liability for personal injury caused by faulty or unsafe appliances - Replacement of any item that becomes unsafe or non-functional - Examples: Couch leg breaks, washing machine won't drain, kettle switch fails **5. Safety Override** Notwithstanding any other clause in this agreement, the Landlord retains liability for: - Personal injury caused by defective or unsafe appliances or furniture - Non-compliance with consumer safety standards - Any goods that do not meet Australian safety standards - This liability cannot be waived or excluded by any clause in this agreement **6. Replacement & Repair Timeline** If any appliance or furniture item becomes non-functional or unsafe: - Tenant must notify Landlord immediately - Landlord will repair or replace within 7 days - For essential items (refrigerator, oven, hot water), Landlord will arrange same-day repair/replacement - If Landlord fails to repair, Tenant may arrange repair and deduct cost from rent (with written notice) **7. Move-Out Inspection** At end of tenancy: - Landlord will inspect all furniture and appliances - Condition will be compared against move-in photographic inventory (Schedule B) - Bond deductions will only be made for damage beyond normal wear and tear caused by Tenant misuse - All damage claims must be documented with photographs and receipts - Normal wear and tear is NOT deductible from bond - Manufacturing defects are NOT grounds for bond deduction **8. Examples of Deductible vs Non-Deductible Damage** **DEDUCTIBLE (Tenant misuse/negligence):** - Broken dishware set left by tenant - Torn furniture from pet/rough play (despite no pets in agreement) - Water damage from spilled drink on couch - Burn marks on furniture surface from cigarettes/candles - Dents/cracks from impact with tenant's belongings **NON-DEDUCTIBLE (Normal wear or defect):** - Couch cushion indentation from normal sitting - Worn carpet under high-traffic areas - Faded upholstery from sunlight - Minor scratches on furniture - Appliance that stops working after years of normal use - Paint chips or minor wear on cabinets **9. Dispute Resolution** If Tenant disputes a bond deduction for furniture/appliance damage: - Landlord will provide photographs of damage - Landlord will provide move-in photos showing condition was different - Tenant can request independent assessment - VCAT will determine if damage is within normal wear/tear - Burden is on Landlord to prove damage is not normal wear --- ## THE GARDEN MAINTENANCE CLAUSE FOR YOUR LEASE **Copy this into Schedule F of your rental agreement:** --- ### SCHEDULE F: GARDEN MAINTENANCE **1. Landlord Obligations (Non-Delegable)** The Landlord will be responsible for and will arrange at Landlord's expense: - Regular grass mowing and lawn maintenance - Garden bed maintenance and weeding - Plant watering - Removal of household and yard garden waste (as needed) - Pruning of vegetation and dead wood removal - Fire safety vegetation clearance (10m zone around building) - Maintenance of all structural garden elements: fences, gates, pergolas, retaining walls - Pest control for structural issues (termites, etc.) - Drainage maintenance and repairs - Tree safety inspections and removal of hazardous trees **2. Tenant Responsibilities** The Tenant agrees to: - Keep the garden reasonably tidy during the tenancy - Not damage or remove plants or garden structures without permission - Report any safety hazards (dead branches, damaged fencing) to Landlord immediately - Allow Landlord access to garden for maintenance and inspections with 24 hours' notice **3. What Tenant CANNOT Be Required To Do** Despite any other clause, the Tenant is NOT responsible for: - Structural maintenance (fences, walls, pergolas, gates) - Dead tree removal - Professional pest control - Major garden repairs or renovation - Fire safety clearance work - Noxious weed control (council health/safety issue) - Drainage repairs - Power equipment operation beyond their knowledge/training **4. Safety Override** If any garden element poses a safety hazard: - Tenant can request Landlord remove/repair immediately - Landlord must respond within 24 hours - Tenant can withhold rent if safety issue is not resolved within 3 days - Tenant is not required to live with dangerous garden conditions (dead trees, unstable fencing, etc.) **5. Access for Maintenance** Landlord may access the garden for maintenance purposes: - Landlord will provide 24 hours' notice (except emergencies) - During reasonable hours (8am-5pm, Monday-Friday) - Tenant will be notified of maintenance schedule - Tenant will not be charged for any maintenance work - Tenant will allow reasonable access to structures and vegetation **6. Property Return Condition** At end of tenancy, the garden should be returned in: - Similar condition to commencement (fair wear and tear excepted) - Grass mowed and garden tidied - No broken structures (unless damage was pre-existing) - No deductions from bond for normal garden wear and tear Deductions from bond for garden will only be made for: - Deliberate damage to structures (broken fence, damaged pergola) - Removal of plants/trees - Serious neglect (completely unmaintained/overgrown garden) - Not for normal wear from use --- ## SUMMARY: WHAT TO PUT IN YOUR LEASE ### Schedule E (Furniture & Appliances): ✅ Copy the Furniture & Appliances Liability clause above ✅ Specify tenant maintenance (cleaning, filters, reporting faults) ✅ Make clear you're responsible for safety and defects ✅ Include replacement timeline (7 days) ✅ Define deductible vs non-deductible damage ### Schedule F (Garden Maintenance): ✅ Copy the Garden Maintenance clause above ✅ Specify YOU are providing all garden maintenance ✅ Make clear tenant is NOT responsible for structural work ✅ Include safety override ✅ Define access procedures --- ## VCAT COMPLIANCE These clauses have been written to: - Comply with Consumer Goods Act 1983 (Vic) - Comply with Residential Tenancies Act 1997 (Vic) - Align with VCAT precedent and enforcement standards - Protect you from unfair clause challenges - Be clear and understandable by tenants - Survive VCAT challenge if tenant disputes - Balance tenant protection with landlord rights **You CAN enforce:** - Tenant maintenance responsibilities - Deductions for misuse/negligence damage - Tenant's obligation to report faults **You CANNOT enforce:** - Exclusions of safety liability - Requirements for tenant to replace defective items - Tenant responsibility for structural garden work - Exclusions of consumer guarantees --- ## YOUR ACTION ITEMS Before sending lease to prospective tenants: - [ ] Copy Schedule E (Furniture & Appliances) into your rental agreement - [ ] Copy Schedule F (Garden Maintenance) into your rental agreement - [ ] Complete Schedule B (Furniture Inventory) with photos - [ ] Take move-in photos of all furniture/appliances showing condition - [ ] Take move-in photos of garden showing current state - [ ] Have licensed inspections completed (smoke, gas, electrical, RCD) - [ ] Include all inspection certificates with lease - [ ] Have SRO approval letter ready to include with lease - [ ] Print and sign final lease agreement Once SRO approval is obtained and prospective tenant identified, you're ready to present them with a professional, legally-compliant lease agreement. --- **Document prepared:** May 2026 **Based on:** Victorian Residential Tenancies Act 1997, Consumer Goods Act 1983, VCAT precedent **Last updated:** May 2026